News January 2021 UK-adoption of Amendments for IBOR Phase 2 and Amendments to IFRS 4

UK-adoption of Amendments for IBOR Phase 2 and Amendments to IFRS 4

06 January 2021
The Secretary of State for Business, Energy and Industrial Strategy (BEIS), in exercise of the powers conferred by statutory instrument 2019/685*, adopted on 5 January 2021, the following amendments to international accounting standards for use within the United Kingdom:
 
Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
 
The Amendments are effective for annual periods beginning on or after 1 January 2021, with early application permitted.
 
The Amendments focus on the effects on financial statements when an entity replaces the old interest rate benchmark with an alternative benchmark rate as a consequence of the global regulatory reform of key interbank offered rates (IBORs).
 
Link to the Adoption statement on the UK Endorsement Board website here.
 
Link to the UK-adopted international accounting standard on the UK Endorsement Board website here.
 
Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
 
The Amendments extend the expiry date of the temporary exemption from applying IFRS 9 Financial Instruments from 1 January 2021 to 1 January 2023, to align the effective dates of IFRS 9 with IFRS 17 Insurance Contracts for entities within the scope of the exemption.
 
Link to the Adoption statement on the UK Endorsement Board website here.  
 
Link to the UK-adopted international accounting standard on the UK Endorsement Board website here.
 
The updated UKEB Adoption status report can be found here.

*The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019, No. 685, regulation 6(1).
 

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